Pursuant to Executive Order No. 66 (1978), N.J.A.C. 13:45B is scheduled to
expire on September 12, 2002. Pursuant to N.J.S.A. 52:14B-5.1, this date has
been extended to March 11, 2003 by the filing of this proposal. The Office of
Consumer Protection within the Division of Consumer Affairs ("The Division")
has reviewed these rules and determined them to be necessary, reasonable and
proper for the purposes for which they were originally promulgated. The Division
proposes to readopt N.J.A.C. 13:45B in its entirety without change. The following
is a summary of each of the 15 subchapters of N.J.A.C. 13:45B.

Subchapter 1 sets forth the purpose and scope for N.J.A.C. 13:45B and defines
important words and terms which are used throughout the chapter.

Subchapter 2 sets forth the requirements for employment agency owners and the
holders of an employment agency license. The rules state that employment agencies
must obtain a license before they operate. Additionally, each person who places
or refers job seekers or furnishes information as to where the help or employment
may be obtained, or who personally manages, operates, or carries on the business
of an employment agency, must obtain an employment agent's license. The rules
also detail licensure, bonding, recording requirements, license holder obligations,
and the requirement to file the agency's fee schedule with the Office of Consumer
Protection.

Subchapter 3 provides employment agencies with rules as to primary and secondary
locations for business locations. An employment agency must obtain a special
permit in order to operate a secondary location.

Subchapter 4 sets forth examination subjects and specific rules for various
classifications of employment agents, agencies that offer certain types of career
counseling and employment agencies that provide temporary help.

Subchapter 5 states that consulting firms which offer temporary help services
are required to register as consulting firms, not temporary help service firms.
The rules also require consulting firms which offer temporary help services
to post a bond of $1,000 with the Attorney General to ensure compliance with
the Consumer Fraud Act, N.J.S.A. 56:8-1 et seq.

Subchapter 6 sets forth rules for the operation of entertainment agencies.
Entertainment agencies are required to post their licenses in a conspicuous
place within the agency itself. The subchapter also sets forth the contract
requirements between the entertainment agencies and each performing artist and
advertising guidelines for entertainment agencies.

Subchapter 7 contains the fee schedule for N.J.A.C. 13:45B and states that
all licenses expire on January 1 of the year following their issuance, and all
registrations expire on July 1 of each year.

Subchapter 8 states that all out-of-State businesses offering employment and
personnel services in New Jersey must comply with the provisions of N.J.A.C.
13:45B. Additionally, each out-of-State holder of a New Jersey employment agency
license or out-of-State registrant must file the name and address of a New Jersey
agent for service of process.

Subchapter 13 states that violations of the rules are to be deemed violations
of the Personnel Services Act, N.J.S.A. 34:8-43 et seq., and if applicable,
the Consumer Fraud Act, N.J.S.A. 56:8-1 et seq. The subchapter also sets forth
the power of the Director to enforce the provisions of the Personnel Services
Act, and if applicable, the Consumer Fraud Act, and the rules in the chapter
and the standards for the issuance and renewal of licenses and registration.

This proposal has not been calendared pursuant to the requirements of N.J.A.C.
1:30-3.1 and, therefore, a 60-day comment period is provided pursuant to N.J.A.C.
1:30-3.3(a)5.

Social Impact

The Division believes that all persons using the services of various firms
regulated by this subchapter will benefit from the readoption of N.J.A.C. 13:45B.
Additionally, the public will benefit from the rules ensuring the competence
of health care service personnel which provide safeguards for both job seekers
and potential employers. The regulation of out-of-State firms performing in-State
activities provides a safeguard for New Jersey consumers by establishing standards
of conduct and providing for an agent for service of process.

Economic Impact

The readoption of N.J.A.C. 13:45B will have an economic impact on businesses
which are required to register annually with the Office of Consumer Protection
and pay an annual registration fee. Due to the low cost of registration fees
in proportion to the overall economic benefit that operating as a personnel
service provides, these fees will not result in a detrimental economic effect
on personnel services in New Jersey. Additionally, the public benefit derived
from ensuring professional competence on the personnel services industry outweighs
the cost of registration. The bond requirements in the rules proposed for readoption
will also have an economic effect on some of the businesses regulated by N.J.A.C.
13:45B. Each employment agency, career consultant or any placement organization,
prepaid computer job matching or job listing service and health care service
firm is required to post a bond in the sum of $10,000 with a duly authorized
surety company, while consulting firms providing temporary help services are
required to post a bond in the amount of $1,000.

Federal Standards Statement

A Federal standards analysis is not required because there are no Federal standards
or requirements applicable to the rules proposed for readoption.

Jobs Impact

The Division believes that the readoption of N.J.A.C. 13:45B is likely to have
a positive impact on job creation in New Jersey. Although it is impossible to
accurately calculate the number of jobs which will be created as a result of
the readoption of the rules, it is the business of personnel services firms
to employ persons seeking work. While the rules will not create any jobs, they
establish uniform standards and protections for persons using their services.

Agriculture IndustryImpact

The rules proposed for readoption will have no impact on the agriculture industry
in the State.

Regulatory Flexibility Analysis

The Regulatory Flexibility Act, N.J.S.A. 52:14B-16 et seq. (the Act), requires
the Division to give a description of the types and an estimate of the number
of small businesses to which the rules proposed for readoption will apply. If,
for the purposes of the Act, the approximately 2,079 employment agencies, consulting
firms, entertainment agencies, career consulting or outplacement agencies and
health care service firms in New Jersey, are considered "small businesses" within
the meaning of the Act, then the following analysis applies.

The Act requires the Division to set forth the reporting, recordkeeping, and
other compliance requirements of the proposal including the kinds of professional
services likely to be needed to comply with the requirements. The Act further
requires the Division to estimate the initial and annual compliance costs, outline
the manner in which it has designed the rules to minimize any adverse economic
impact upon small businesses, and to set forth whether the rules establish differing
compliance requirements for small businesses.

The rules contain no reporting requirements. However, the rules do include
recordkeeping requirements. N.J.A.C. 13:45B-2.4 details the requirements for
employment agency records. N.J.A.C. 13:45B-6 requires entertainment agencies
to file a copy of their contract form, and N.J.A.C. 13:45B-12 requires copies
of advertisements to be kept by the agency for a minimum of two years.

The rules proposed for readoption also impose numerous compliance requirements.

Subchapter 2 requires employment agencies to obtain a license, deposit a bond
with the Director, maintain records, enter into written agreements with job
seekers, provide job seekers with relevant documents and file the fee schedule.

Subchapter 4 details requirements for the "aeronautical" classification, licensure
for a licensee that designates their field as "career counseling," and requirements
for a temporary placement operation.

Subchapter 15 sets forth the requirements for registration and duties of healthcare
service firms.

Costs of compliance with the rules are discussed in the Economic Impact above.
The Board believes that no professional services are likely to be needed to
comply with the rules proposed for readoption. The Division considers the proposed
readoption necessary to preserve the health, safety and welfare of the public.
Compliance requirements do not differ based on size of the business in order
to ensure that all services covered in these rules are provided uniformly throughout
the State.

Smart Growth Impact

The Director does not anticipate that the rules proposed for readoption will
have any impact on the achievement of smart growth and the implementation of
the State Development and Redevelopment Plan, otherwise known as the State Plan.

Full text of the proposed readoption may be found in the New Jersey Administrative
Code at N.J.A.C. 13:45B